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HomeMy WebLinkAboutC22-219 Economic and Planning SystemsAGREEMENT FOR PROFESSIONAL SERVICES BETWEEN EAGLE COUNTY, COLORADO AND Economic & Planning Systems, Inc. (EPS) THIS AGREEMENT (“Agreement”) is effective as of the 1st day of May, 2022 by and between Economic & Planning Systems, Inc. (hereinafter “Consultant” or “Contractor”) and Eagle County, Colorado, a body corporate and politic (hereinafter “County”). RECITALS WHEREAS, an Eagle County Housing Needs Assessment update was completed in 2018, which indicated that 7,970 affordable housing units will be needed to keep up with the demand for affordable housing units in Eagle County by the year 2030. Additionally, The Mountain Migration Report was completed in 2021, and showed changes in housing occupancy throughout Colorado mountain resort areas, including changes in the way housing units were occupied between full-time residents, part-time residents and visitors; and WHEREAS, Consultant will complete a nexus study to show the impacts of short-term rentals (STR’s) on workforce housing availability in Eagle County including the relationship between guest spending from STR’s and the demand for workforce housing. This information will be used by Eagle County Government to make decisions on creating future programming or policies related to short-term rentals in unincorporated Eagle County; and WHEREAS, Consultant is authorized to do business in the State of Colorado and has the time, skill, expertise, and experience necessary to provide the Services as defined below in paragraph 1 hereof; and WHEREAS, this Agreement shall govern the relationship between Consultant and County in connection with the Services. AGREEMENT NOW, THEREFORE, in consideration of the foregoing and the following promises Consultant and County agree as follows: 1. Services. Consultant agrees to diligently provide all services, labor, personnel and materials necessary to perform and complete the services described in Exhibit A (“Services”) which is attached hereto and incorporated herein by reference. The Services shall be performed in accordance with the provisions and conditions of this Agreement. a. Consultant agrees to furnish the Services no later than 11/30/2022 and in accordance with the schedule established in Exhibit A. If no completion date is specified in Exhibit A, then Consultant agrees to furnish the Services in a timely and expeditious manner consistent with the DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 2 Eagle County Prof Services Final 5/14 applicable standard of care. By signing below Consultant represents that it has the expertise and personnel necessary to properly and timely perform the Services. b. In the event of any conflict or inconsistency between the terms and conditions set forth in Exhibit A and the terms and conditions set forth in this Agreement, the terms and conditions set forth in this Agreement shall prevail. c. Consultant agrees that it will not enter into any consulting or other arrangements with third parties that will conflict in any manner with the Services. 2. County’s Representative. The Finance Department’s designee shall be Consultant’s contact with respect to this Agreement and performance of the Services. 3. Term of the Agreement. This Agreement shall commence upon the date first written above, and subject to the provisions of paragraph 12 hereof, shall continue in full force and effect through the 30th of November 2022. 4. Extension or Modification. This Agreement may not be amended or supplemented, nor may any obligations hereunder be waived, except by agreement signed by both parties. No additional services or work performed by Consultant shall be the basis for additional compensation unless and until Consultant has obtained written authorization and acknowledgement by County for such additional services in accordance with County’s internal policies. Accordingly, no course of conduct or dealings between the parties, nor verbal change orders, express or implied acceptance of alterations or additions to the Services, and no claim that County has been unjustly enriched by any additional services, whether or not there is in fact any such unjust enrichment, shall be the basis of any increase in the compensation payable hereunder. In the event that written authorization and acknowledgment by County for such additional services is not timely executed and issued in strict accordance with this Agreement, Consultant’s rights with respect to such additional services shall be deemed waived and such failure shall result in non-payment for such additional services or work performed. 5. Compensation. County shall compensate Consultant for the performance of the Services in a sum computed and payable as set forth in Exhibit A. The performance of the Services under this Agreement shall not exceed $57,500. Consultant shall not be entitled to bill at overtime and/or double time rates for work done outside of normal business hours unless specifically authorized in writing by County. a. Payment will be made for Services satisfactorily performed within thirty (30) days of receipt of a proper and accurate invoice from Consultant. All invoices shall include detail regarding the hours spent, tasks performed, who performed each task and such other detail as County may request. b. Any out-of-pocket expenses to be incurred by Consultant and reimbursed by County shall be identified on Exhibit A. Out-of-pocket expenses will be reimbursed without any additional mark-up thereon and are included in the not to exceed contract amount set forth above. Out-of-pocket expenses shall not include any payment of salaries, bonuses or other compensation to personnel of Consultant. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 3 Eagle County Prof Services Final 5/14 Consultant shall not be reimbursed for expenses that are not set forth on Exhibit A unless specifically approved in writing by County. c. If, at any time during the term or after termination or expiration of this Agreement, County reasonably determines that any payment made by County to Consultant was improper because the Services for which payment was made were not performed as set forth in this Agreement, then upon written notice of such determination and request for reimbursement from County, Consultant shall forthwith return such payment(s) to County. Upon termination or expiration of this Agreement, unexpended funds advanced by County, if any, shall forthwith be returned to County. d. County will not withhold any taxes from monies paid to the Consultant hereunder and Consultant agrees to be solely responsible for the accurate reporting and payment of any taxes related to payments made pursuant to the terms of this Agreement. e. Notwithstanding anything to the contrary contained in this Agreement, County shall have no obligations under this Agreement after, nor shall any payments be made to Consultant in respect of any period after December 31 of any year, without an appropriation therefor by County in accordance with a budget adopted by the Board of County Commissioners in compliance with Article 25, title 30 of the Colorado Revised Statutes, the Local Government Budget Law (C.R.S. 29-1-101 et. seq.) and the TABOR Amendment (Colorado Constitution, Article X, Sec. 20). 6. Sub-consultants. Consultant acknowledges that County has entered into this Agreement in reliance upon the particular reputation and expertise of Consultant. Consultant shall not enter into any sub-consultant agreements for the performance of any of the Services or additional services without County’s prior written consent, which may be withheld in County’s sole discretion. County shall have the right in its reasonable discretion to approve all personnel assigned to the subject Project during the performance of this Agreement and no personnel to whom County has an objection, in its reasonable discretion, shall be assigned to the Project. Consultant shall require each sub-consultant, as approved by County and to the extent of the Services to be performed by the sub-consultant, to be bound to Consultant by the terms of this Agreement, and to assume toward Consultant all the obligations and responsibilities which Consultant, by this Agreement, assumes toward County. County shall have the right (but not the obligation) to enforce the provisions of this Agreement against any sub-consultant hired by Consultant and Consultant shall cooperate in such process. The Consultant shall be responsible for the acts and omissions of its agents, employees and sub-consultants or sub-contractors. 7. Insurance. Consultant agrees to provide and maintain at Consultant’s sole cost and expense, the following insurance coverage with limits of liability not less than those stated below: a. Types of Insurance. i. Workers’ Compensation insurance as required by law. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 4 Eagle County Prof Services Final 5/14 ii. Auto coverage with limits of liability not less than $1,000,000 each accident combined bodily injury and property damage liability insurance, including coverage for owned, hired, and non-owned vehicles. iii. Commercial General Liability coverage to include premises and operations, personal/advertising injury, products/completed operations, broad form property damage with limits of liability not less than $1,000,000 per occurrence and $2,000,000 aggregate limits. iv. Professional liability insurance with prior acts coverage for all Services required hereunder, in a form and with an insurer or insurers satisfactory to County, with limits of liability of not less than $1,000,000 per claim and $2,000,000 in the aggregate. In the event the professional liability insurance is on a claims-made basis, Consultant warrants that any retroactive date under the policy shall precede the effective date of this Agreement. Continuous coverage will be maintained during any applicable statute of limitations for the Services and Project. b. Other Requirements. i. The automobile and commercial general liability coverage shall be endorsed to include Eagle County, its associated or affiliated entities, its successors and assigns, elected officials, employees, agents and volunteers as additional insureds. ii. Consultant’s certificates of insurance shall include sub-consultants as additional insureds under its policies or Consultant shall furnish to County separate certificates and endorsements for each sub-consultant. All coverage(s) for sub-consultants shall be subject to the same minimum requirements identified above. Consultant and sub-consultants, if any, shall maintain the foregoing coverage in effect until the Services are completed. In addition, all such policies shall be kept in force by Consultant and its sub-consultants until the applicable statute of limitations for the Project and the Services has expired. iii. Insurance shall be placed with insurers duly licensed or authorized to do business in the State of Colorado and with an “A.M. Best” rating of not less than A-VII. iv. Consultant’s insurance coverage shall be primary and non-contributory with respect to all other available sources. Consultant’s policy shall contain a waiver of subrogation against Eagle County. v. All policies must contain an endorsement affording an unqualified thirty (30) days notice of cancellation to County in the event of cancellation of coverage. vi. All insurers must be licensed or approved to do business within the State of Colorado and all policies must be written on a per occurrence basis unless otherwise provided herein. vii. Consultant’s certificate of insurance evidencing all required coverage(s) is attached hereto as Exhibit B. Upon request, Consultant shall provide a copy of the actual insurance DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 5 Eagle County Prof Services Final 5/14 policy and/or required endorsements required under this Agreement within five (5) business days of a written request from County, and hereby authorizes Consultant’s broker, without further notice or authorization by Consultant, to immediately comply with any written request of County for a complete copy of the policy. viii. Consultant shall advise County in the event the general aggregate or other aggregate limits are reduced below the required per occurrence limit. Consultant, at its own expense, will reinstate the aggregate limits to comply with the minimum limits and shall furnish County a new certificate of insurance showing such coverage. ix. If Consultant fails to secure and maintain the insurance required by this Agreement and provide satisfactory evidence thereof to County, County shall be entitled to immediately terminate this Agreement. x. The insurance provisions of this Agreement shall survive expiration or termination hereof. xi. The parties hereto understand and agree that the County is relying on, and does not waive or intend to waive by any provision of this Agreement, the monetary limitations or rights, immunities and protections provided by the Colorado Governmental Immunity Act, as from time to time amended, or otherwise available to County, its affiliated entities, successors or assigns, its elected officials, employees, agents and volunteers. xii. Consultant is not entitled to workers’ compensation benefits except as provided by the Consultant, nor to unemployment insurance benefits unless unemployment compensation coverage is provided by Consultant or some other entity. The Consultant is obligated to pay all federal and state income tax on any moneys paid pursuant to this Agreement. 8. Indemnification. The Consultant shall indemnify and hold harmless County, and any of its officers, agents and employees against any losses, claims, damages or liabilities for which County may become subject to insofar as any such losses, claims, damages or liabilities arise out of, directly or indirectly, this Agreement, or are based upon any performance or nonperformance by Consultant or any of its sub-consultants hereunder; and Consultant shall reimburse County for reasonable attorney fees and costs, legal and other expenses incurred by County in connection with investigating or defending any such loss, claim, damage, liability or action. This indemnification shall not apply to claims by third parties against the County to the extent that County is liable to such third party for such claims without regard to the involvement of the Consultant. This paragraph shall survive expiration or termination hereof. 9. Ownership of Documents. All documents prepared by Consultant in connection with the Services shall become property of County. Consultant shall execute written assignments to County of all rights (including common law, statutory, and other rights, including copyrights) to the same as County shall from time to time request. For purposes of this paragraph, the term “documents” shall mean and include all reports, plans, studies, tape or other electronic recordings, drawings, sketches, estimates, data sheets, maps and work sheets produced, or prepared by or for Consultant (including any employee or DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 6 Eagle County Prof Services Final 5/14 subconsultant in connection with the performance of the Services and additional services under this Agreement). 10. Notice. Any notice required by this Agreement shall be deemed properly delivered when (i) personally delivered, or (ii) when mailed in the United States mail, first class postage prepaid, or (iii) when delivered by FedEx or other comparable courier service, charges prepaid, to the parties at their respective addresses listed below, or (iv) when sent via facsimile so long as the sending party can provide facsimile machine or other confirmation showing the date, time and receiving facsimile number for the transmission, or (v) when transmitted via e-mail with confirmation of receipt. Either party may change its address for purposes of this paragraph by giving five (5) days prior written notice of such change to the other party. COUNTY: Eagle County, Colorado Attention: Anna Earl 500 Broadway Post Office Box 850 Eagle, CO 81631 Telephone: 970-328-3514 E-Mail: anna.earl@eaglecounty.us With a copy to: Eagle County Attorney 500 Broadway Post Office Box 850 Eagle, Co 81631 Telephone: 970-328-8685 Facsimile: 970-328-8699 E-Mail: atty@eaglecounty.us CONSULTANT: Andrew Knudtsen Economic & Planning Systems, Inc. (EPS) 730 17th Street Suite 630 Denver, CO 80202 Telephone: 303-623-3557 E-Mail: aknudtsen@epsdenver.com 11. Coordination. Consultant acknowledges that the development and processing of the Services for the Project may require close coordination between various consultants and contractors. Consultant shall coordinate the Services required hereunder with the other consultants and contractors that are identified by County to Consultant from time to time, and Consultant shall immediately notify such other consultants or contractors, in writing, of any changes or revisions to Consultant’s work product that might DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 7 Eagle County Prof Services Final 5/14 affect the work of others providing services for the Project and concurrently provide County with a copy of such notification. Consultant shall not knowingly cause other consultants or contractors extra work without obtaining prior written approval from County. If such prior approval is not obtained, Consultant shall be subject to any offset for the costs of such extra work. 12. Termination. County may terminate this Agreement, in whole or in part, at any time and for any reason, with or without cause, and without penalty therefor with seven (7) calendar days’ prior written notice to the Consultant. Upon termination of this Agreement, Consultant shall immediately provide County with all documents as defined in paragraph 9 hereof, in such format as County shall direct and shall return all County owned materials and documents. County shall pay Consultant for Services satisfactorily performed to the date of termination. 13. Venue, Jurisdiction and Applicable Law. Any and all claims, disputes or controversies related to this Agreement, or breach thereof, shall be litigated in the District Court for Eagle County, Colorado, which shall be the sole and exclusive forum for such litigation. This Agreement shall be construed and interpreted under and shall be governed by the laws of the State of Colorado. 14. Execution by Counterparts; Electronic Signatures. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. The parties approve the use of electronic signatures for execution of this Agreement. Only the following two forms of electronic signatures shall be permitted to bind the parties to this Agreement: (i) Electronic or facsimile delivery of a fully executed copy of the signature page; (ii) the image of the signature of an authorized signer inserted onto PDF format documents. All documents must be properly notarized, if applicable. All use of electronic signatures shall be governed by the Uniform Electronic Transactions Act, C.R.S. 24-71.3-101 to 121. 15. Other Contract Requirements. a. Consultant shall be responsible for the completeness and accuracy of the Services, including all supporting data or other documents prepared or compiled in performance of the Services, and shall correct, at its sole expense, all significant errors and omissions therein. The fact that the County has accepted or approved the Services shall not relieve Consultant of any of its responsibilities. Consultant shall perform the Services in a skillful, professional and competent manner and in accordance with the standard of care, skill and diligence applicable to Consultants performing similar services. Consultant represents and warrants that it has the expertise and personnel necessary to properly perform the Services and covenants that its professional personnel are duly licensed to perform the Services within Colorado. This paragraph shall survive termination of this Agreement. b. Consultant agrees to work in an expeditious manner, within the sound exercise of its judgment and professional standards, in the performance of this Agreement. Time is of the essence with respect to this Agreement. c. This Agreement constitutes an agreement for performance of the Services by Consultant as an independent contractor and not as an employee of County. Nothing contained in this Agreement DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 8 Eagle County Prof Services Final 5/14 shall be deemed to create a relationship of employer-employee, master-servant, partnership, joint venture or any other relationship between County and Consultant except that of independent contractor. Consultant shall have no authority to bind County. d. Consultant represents and warrants that at all times in the performance of the Services, Consultant shall comply with any and all applicable laws, codes, rules and regulations. e. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all other agreements or understanding between the parties with respect thereto. f. Consultant shall not assign any portion of this Agreement without the prior written consent of the County. Any attempt to assign this Agreement without such consent shall be void. g. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective permitted assigns and successors in interest. Enforcement of this Agreement and all rights and obligations hereunder are reserved solely for the parties, and not to any third party. h. No failure or delay by either party in the exercise of any right hereunder shall constitute a waiver thereof. No waiver of any breach shall be deemed a waiver of any preceding or succeeding breach. i. The invalidity, illegality or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision hereof. j. Consultant shall maintain for a minimum of three years, adequate financial and other records for reporting to County. Consultant shall be subject to financial audit by federal, state or county auditors or their designees. Consultant authorizes such audits and inspections of records during normal business hours, upon 48 hours’ notice to Consultant. Consultant shall fully cooperate during such audit or inspections. k. The signatories to this Agreement aver to their knowledge, no employee of the County has any personal or beneficial interest whatsoever in the Services or Property described in this Agreement. The Consultant has no beneficial interest, direct or indirect, that would conflict in any manner or degree with the performance of the Services and Consultant shall not employ any person having such known interests. l. The Consultant, if a natural person eighteen (18) years of age or older, hereby swears and affirms under penalty of perjury that he or she (i) is a citizen or otherwise lawfully present in the United States pursuant to federal law, (ii) to the extent applicable shall comply with C.R.S. 24-76.5-103 prior to the effective date of this Agreement. 16. Prohibitions on Government Contracts. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 9 Eagle County Prof Services Final 5/14 As used in this Section 16, the term undocumented individual will refer to those individuals from foreign countries not legally within the United States as set forth in C.R.S. 8-17.5-101, et. seq. If Consultant has any employees or subcontractors, Consultant shall comply with C.R.S. 8-17.5-101, et. seq., and this Agreement. By execution of this Agreement, Consultant certifies that it does not knowingly employ or contract with an undocumented individual who will perform under this Agreement and that Consultant will participate in the E-verify Program or other Department of Labor and Employment program (“Department Program”) in order to confirm the eligibility of all employees who are newly hired for employment to perform Services under this Agreement. a. Consultant shall not: i. Knowingly employ or contract with an undocumented individual to perform Services under this Agreement; or ii. Enter into a subcontract that fails to certify to Consultant that the subcontractor shall not knowingly employ or contract with an undocumented individual to perform work under the public contract for services. b. Consultant has confirmed the employment eligibility of all employees who are newly hired for employment to perform Services under this Agreement through participation in the E-Verify Program or Department Program, as administered by the United States Department of Homeland Security. Information on applying for the E-verify program can be found at: https://www.uscis.gov/e-verify c. Consultant shall not use either the E-verify program or other Department Program procedures to undertake pre-employment screening of job applicants while the public contract for services is being performed. d. If Consultant obtains actual knowledge that a subcontractor performing work under the public contract for services knowingly employs or contracts with an undocumented individual, Consultant shall be required to: i. Notify the subcontractor and County within three (3) days that Consultant has actual knowledge that the subcontractor is employing or contracting with an undocumented individual; and ii. Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to subparagraph (i) of the paragraph (d) the subcontractor does not stop employing or contracting with the undocumented individual; except that Consultant shall not terminate the contract with the subcontractor if during such three (3) days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an undocumented individual. e. Consultant shall comply with any reasonable request by the Department of Labor and Employment made in the course of an investigation that the department is undertaking pursuant to its authority established in C.R.S. 8-17.5-102(5). DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 10 Eagle County Prof Services Final 5/14 f. If Consultant violates these prohibitions, County may terminate the Agreement for breach of contract. If the Agreement is so terminated specifically for breach of this provision of this Agreement, Consultant shall be liable for actual and consequential damages to County as required by law. g. County will notify the Colorado Secretary of State if Consultant violates this provision of this Agreement and County terminates the Agreement for such breach. [REST OF PAGE INTENTIONALLY LEFT BLANK] DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 11 Eagle County Prof Services Final 5/14 IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first set forth above. COUNTY OF EAGLE, STATE OF COLORADO, By and Through Its COUNTY MANAGER By: ______________________________ Jeff Shroll, County Manager CONSULTANT: By:________________________________ Print Name: _________________________ Title: ______________________________ DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Managing Principal Andrew Knudtsen 12 Eagle County Prof Services Final 5/14 EXHIBIT A SCOPE OF SERVICES, SCHEDULE, FEES DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Economic & Planning Systems, Inc. March 31, 2022 | Updated May 6, 2022 EPS #223026 Prepared for: Short-Term Rental Program Fee Nexus Study Eagle County, Colorado Prepared by: with: PROPOSAL DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Table of Contents 1 2 3 4 PROPOSAL FORM 1 Cover Letter 2 QUALIFICATIONS 3 Project Team Résumés 7 EXPERIENCE 12 SCHEDULE 20 BUDGET/PRICING 20-21 FAMILIARITY WITH EAGLE COUNTY 22 REFERENCES 26 LEGAL ISSUES 27 DELIVERABLES 27 5 6 7 8 9 DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E REQUEST FOR PROPOSAL PROPOSAL FORM THIS PROPOSAL FORM MUST BE SUBMITTED WITH YOUR PROPOSAL TO: Eagle County, Colorado 500 Broadway Post Office Box 850 Eagle, CO 81631 Re:Short-Term Rental Program Fee Nexus Report The undersigned, having examined the Instructions to Proposers and any and all documents related to the above referenced RFP: (a) agree to comply with all conditions, requirements, and instructions of the Request for Proposal as stated or implied therein; (b) Acknowledges the right of Eagle County, Colorado in its sole discretion to reject any or all proposals submitted, and that an award may be made to a proposer even though not the lowest cost; (c) Acknowledges and agrees that the discretion of Eagle County, Colorado in selection of the successful proposers shall be final, not subject to review or attack; and (d) Acknowledges that this proposal is made with full knowledge of the foregoing and full agreement thereto. By submission of this proposal, and signature below, the respondent acknowledges that he has the authority to sign this Proposal Form and bind the company named below. The proposer further acknowledges that Eagle County, Colorado has the right to make any inquiry or investigation it deems appropriate to substantiate or supplement information contained in the proposal and related documents, and authorizes release to Eagle County of any and all information sought in such inquiry or investigation. Company Name: _______________________________________ Title of Proposer: _______________________________________ Signature of Proposer:_______________________________________ 7 RFP Professional Services Eagle County Final 6/14 Economic & Planning Systems, Inc. Managing Principal DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Economic & Planning Systems, Inc. The Economics of Land Use 730 17th Street Suite 630 Denver, CO 80202 303 623 3557 Denver Los Angeles Oakland Sacramento epsys.com March 31, 2022 Ms. Anna Earl Finance Manager Eagle County, Colorado 500 Broadway Eagle, CO 81631 electronic submission via bidnet Subject: Short-Term Rental Program Fee Nexus Study; EPS #223026 Dear Ms. Earl: Economic & Planning Systems (EPS) and RRC Associates is pleased to present this proposal to prepare a Short-Term Rental Program Fee Nexus Study for Eagle County. We believe we have a solid understanding of Eagle County from our extensive work done throughout the county in the past. We bring a wealth of experience to affordable housing challenges, including innovative solutions for emerging challenges. EPS is a full-service economics consulting firm founded in 1983 with 42 employees in its Denver, Oakland, Sacramento and Los Angeles offices. EPS has a broad-based practice in real estate analysis, public finance, and land use policy. The firm has worked with a wide range of public and private clients throughout the nation and has established a reputation for objective high quality analysis and creativity. The EPS team brings a depth of knowledge, insight, and local experience to their work. Andrew Knudtsen, Managing Principal, will oversee the project and ensure alignment between community needs, project direction, and firm deliverables. He will be supported by Brian Duffany, Principal, and Rachel Shindman, Vice President, both of whom are experienced in and passionate about housing and will support the analysis and outreach components. Brian will be the project advisor, providing his insights and knowledge on affordable housing strategies and experience from previous affordable housing work in the Rocky Mountain West to support the analysis. Rachel will be the project manager, serving as the day-to-day contact and primary technical analyst, and be available for interaction with County staff whenever needed. We have enjoyed our previous work with Eagle County and look forward to the opportunity to continue our involvement in the community and work on this project. Sincerely, ECONOMIC & PLANNING SYSTEMS, INC. Andrew Knudtsen Managing Principal DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Economic & Planning Systems, Inc. | RRC Associates Short-Term Rental Program Fee Nexus Study 3 2. QUALIFICATIONS EPS has addressed real estate development and land use issues in all phases of the urban life cycle for public and private sector clients throughout the western United States for nearly 40 years. EPS excels in collaborating with our clients to create and maintain places that are economically, socially, and ecologically sustainable. Every day, our assignments require us to creatively solve complex challenges in real estate development, land use policy, and local government finance. Affordable Housing EPS provides a full spectrum of services related to affordable housing, workforce housing, and market-rate housing. At the macro level, we work with communities to structure initial strategic housing plan frameworks, revise housing needs goals, establish production or rehabilitation targets, develop financing plans, or provide rigorous analysis that quantifies the return on investment from public dollars directed toward housing goals. We conduct citywide analyses of housing market conditions and trends and housing needs analyses that identify the supply and demand by product type and income levels. We also develop regulatory approaches to generating affordable housing including inclusionary housing ordinances, as well as conduct nexus studies to establish impact and linkage fees that generate funding to be applied to the provision of housing. At the project level, EPS evaluates affordable housing proposals to determine the need for and application of public investment. And as with all of our real estate feasibility work, we provide sound, objective analysis of the project pro forma to evaluate the need for, amount, and type of public investment under consideration. Project Team The following pages include team firm bios and résumés for key personnel assigned to the project. Their respective qualifications and relevant experience to the Short-Term Rental Program Fee Nexus Study are provided. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E About Economic & Planning Systems 303 623 3557 Denver | Los Angeles | Oakland | Sacramento epsys.com Clients Served Since 1983 EPS has provided consulting services to hundreds of public- and private-sector clients in Colorado and throughout the United States. Clients include cities, counties, special districts, multi- jurisdictional authorities, property owners, developers, financial institutions, and land use attorneys. Staff Capabilities The professional staff includes specialists in public finance, real estate development, land use and transportation planning, government organization, and computer applications. The firm excels in preparing concise analyses that disclose risks and impacts, support decision making, and provide solutions to real estate development and land use-related problems. X Real Estate Economics X Public Finance X Land Use & Transportation X Economic Development & Revitalization X Fiscal and Economic Impact Analysis X Housing Policy X Public-Private Partnership (P3) X Parks and Open Space Economics X X X X X X X X AREAS OF EXPERTISE Economic & Planning Systems, Inc. (EPS) is a land economics consulting firm experienced in the full spectrum of services related to real estate development, the financing of public infrastructure and government services, land use and conservation planning, and government organization. EPS was founded on the principle that real estate development and land use-related public policy should be built on realistic assessment of market forces and economic trends, feasible implementation measures, and recognition of public policy objectives, including provisions for required public facilities and services. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Archuleta County Housing Needs and Policy Assessment Aspen Housing Update Aurora Housing and Community Needs Assessment Basalt Affordable Housing Strategy Bexar County TX Housing Needs Assessment Big Sky MT Housing Development Plan Billings MT Workforce Housing Needs Assessment Boulder lnclusionary Housing Rental Policy Update Boulder Rental Housing Climate Action Plan Cost Impact Broomfield CO McWhinney Affordable Housing Analysis Chaffee County Housing Needs Assessment City & County of Denver Housing Economic Study/ Denver IHO Clear Creek County Housing Assessment Denver Housing Production and Funding Analysis Douglas County Housing Partnership Nexus Study Edwards Housing Economic Impact Study Fort Collins lnclusionary Housing Study Lakewood Housing Study Lakewood Support for Development Review Process Leadville and Lake County Housing Needs Assessment Longmont Inclusionary Housing Study Manitou Springs Affordable Housing Needs Assessment Northern Colorado Housing Density Analysis Oklahoma City OK Housing Plan Ontario Canada Inclusionary Zoning Policy Study Plano TX Housing Trends Analysis and Strategic Plan HOUSING POLICY REPRESENTATIVE PROJECTS has a depth of affordable housing related experience. Availability of housing that meets the need for the full spectrum of affordability should be viewed as an integral part of any successful region, conferring economic, social, and environmental benefits that underpin sustainable growth. In recent years, many communities have experienced significant increases in housing demand, pushing rents and prices beyond the level that median-income households can afford. Rising housing costs can cause overcrowding, financial hardship, and in some cases force households to leave their neighborhoods, jobs, and/or social networks. The lack of access to affordable housing affects all sectors of society and has become a particular problem for workers in lower paying fields (e.g., service, public, and non-profit sectors). EPS offers a full spectrum of services related to assessing specific population affordable housing needs, workforce housing, and market-rate housing. We work with communities to structure initial strategic housing plan frameworks, revise housing needs goals, establish production or rehabilitation targets, develop financing plans, or provide rigorous analysis that quantifies the return on investment from public dollars directed toward housing goals. Our work integrates an understanding of local, regional, and national market and policy forces. EPS works in a variety of contexts, from large urban metropolitan areas and regional planning organizations to smaller, rural, suburban, and resort markets. Portland OR Housing Incentive Analysis Roaring Fork Valley Regional Housing Authority 2017 Housing Needs San Antonio Housing Production Target Study San Antonio TX Housing Policy San Miguel County Housing Needs Analysis Sonoran Institute Housing Market Study St. Anthony Center Housing Needs Assessment Summit County Housing Needs Update Summit County Peer Review SW Colorado Regional Housing Plan Tri County Housing Needs Assessment UAACOG Housing Needs Assessment Windsor Study of Demographics and Housing Opportunities DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 4770 Baseline Road, Suite 360 | Boulder, Colorado 80303 | P: 303.449.6558 | www.rrcassociates.com RRC Associates offers services in research, planning, and economic/feasibility analysis to local governments, parks and recreation departments, public agencies, corporations and private developers. In addition, RRC has experience with a variety of specialized recreation topics and situations and frequently works with resort communities and ski area operators, trade associations, destination marketing organizations, non-profits, and others interested in recreation, tourism, and “quality of life topics.” The company is made up of a small group of professionals with extensive experience and qualifications to meet the needs and challenges of recreation- oriented organizations. The RRC team uses proven research tools to conduct quantitative and qualitative studies to support needs assessments, master plans and other specialized evaluations. Through extensive consulting work with a variety of clients, the staff at RRC is knowledgeable about best practices, industry benchmarks, market trends, and the wide range of programs and approaches that are being used by recreation and tourism organizations throughout North America. RRC Associates strives for a pragmatic approach that balances innovation, customization, and providing proven services at a reasonable cost. The firm takes pride in our demonstrated ability to meet a project’s time and budget requirements. Our firm’s small size permits us to offer a very personal level of service to our clients; senior members of the firm are highly involved in every project. SERVICES OFFERED Community Planning Parks and Recreation Program Analysis Housing Needs Assessments Population and Employment Research Economic Development Planning Economic Impact Analysis Fiscal Impact Analysis Program Development and Optimization Project Feasibility Analysis Public Processing and Approvals Goals and Policy Formulation Surveys and Market Research Comprehensive Plan Surveys Parks, Recreation and Open Space Surveys Affordable Housing Surveys Local Government Opinion Surveys/Performance Evaluations Customer/User Satisfaction Surveys Market Studies and Strategic Analysis Demographic Research Visitor Profile Research Special Client Services General Consultation Project Team Coordination and Management Financial Presentation Packages Public Participation Workshops Strategic Project Positioning DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 730 17th Street, Suite 630, Denver, CO 80202 aknudtsen@epsdenver.com Economic & Planning Systems, Inc. The Economics of Land Use www.epsys.com 720 460 3301 (direct) Andrew Knudtsen, CCIM Andrew Knudtsen, CCIM, draws from over 25 years’ experience addressing the economic basis for land use policy, with a specific focus on affordable housing programs, policies, incentives, and requirements. Andrew has conducted numerous affordable housing studies ranging from mountain resort communities to urban regions. He has advised both public and private sector entities around affordable housing requirements and understands the policy goals and community need for housing, as well as the economic implications. He started his work related to affordable housing as staff member for the Town of Vail and structured three public-private partnerships, developing approximately 175 units during his tenure on staff. Andrew understands the challenges and the rewards associated with providing housing for locals. SELECTED PROJECT MANAGEMENT EXPERIENCE \ ¾Short Term Rental Linkage Fee Study | Vail, CO ¾Short Term Rental Regulatory Fee Study | Breckenridge, CO ¾Housing Linkage Program | Mountain Village, CO ¾Economic Sustainability Model | Telluride-Mountain Village, CO ¾Affordable Housing Mitigation Rate and Fee-In-Lieu Updates | Vail, CO ¾Affordable Housing Strategic Plan | Aspen, CO ¾Chamonix Affordable Housing Market Feasibility Study Vail, CO ¾West Steamboat Neighborhood Annexation | Steamboat Springs, CO ¾Montrose County Socioeconomic Study | Montrose, CO ¾Cattle Creek Crossing Market Study Garfield County, CO ¾Housing Demand Analysis | San Miguel County, CO ¾Wintergreen Apartment Market Study | Summit County, CO ¾Housing Needs Assessment | Lake County, CO ¾Housing Needs Assessment | Upper Arkansas Area Council of Governments, Colorado ¾Telluride Housing Strategy | Telluride, CO Managing Principal Education Bachelors of Environmental Design, Summa Cum Laude University of Colorado Employment History 21 Years with EPS 27 Years Experience Affiliations CCIM – Certified Commercial Investment Manager; Certificate No.: 18731 ULI – Member of the Explorers Committee State of Colorado Governor’s Blue Ribbon Affordable Housing Panel Publications ”Urban-Suburbia”, Urban Land, October 2008. Speaking Engagements Rail-Volution “Feasibility Evaluation of Joint Venture Development” Vancouver, BC Rail-Volution “Value Capture for the Rest of US” Seattle, WA Appraisal Institute “Transit Oriented Development: Value Capture and Market Positioning” San Diego, CA Urban Land Institute “Quantifying Sustainability” Washington, D.C. Sonoran Institute Summit “Real Estate Premiums and Sustainable Development Trends” Bozeman, MT DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 730 17th Street, Suite 630, Denver, CO 80202 bduffany@epsdenver.com Economic & Planning Systems, Inc. The Economics of Land Use www.epsys.com 303 623 3557 Brian Duffany Brian Duffany is a real estate economist and planner with over 20 years of experience in land economics. Brian has specialized in evaluating the impacts of major real estate investments, and other land use issues such as affordable housing and economic development in mountain communities. He is skilled in financial and demographic analysis and forecasting, economic impact analysis, infrastructure financing analysis, and policy analysis and strategies. SELECTED PROJECT EXPERIENCE ¾Community Plan Update | Minturn, CO ¾Revenue Study Update | Avon, CO ¾Routt County Master Plan | Colorado ¾Urban Renewal Project Evaluations | Bozeman, MT ¾Growth Policy Update | Bozeman, MT ¾Downtown Housing Strategy | Billings, MT ¾Walsenburg and Huerfano County CEDS ¾Housing Needs Update | Chaffee County, CO ¾Targeted Economic Development District Feasibility Study Yellowstone County, MT ¾Southeast Colorado Opportunity Zone Prospectus ¾Comprehensive Plan Economics | Fruita, CO ¾Fruita in Motion | Fruita, CO ¾Housing and Community Sustainability Study | Flagstaff, AZ ¾Workforce Housing Land Swap Impact Analysis | Summit County, CO ¾Housing Mitigation Fee Study | Pagosa Springs, CO ¾Inclusionary Zoning and Linkage Fee Policy Study | Fort Collins, CO ¾West Steamboat Neighborhood Annexation | Steamboat Springs, CO ¾Regional Tax Increment Financing Study | Larimer County, CO ¾Housing and Community Sustainability Study | Flagstaff, AZ ¾Housing Strategy | Clear Creek County, CO ¾Base Area Retail Analysis | Steamboat Springs, CO ¾EverVail Fiscal and Economic Impact Analysis | Vail, CO ¾Lodging Development Policy | Aspen, CO Education Master of Regional Planning, Cornell University Bachelor of Arts, Colby College Employment History 23 Years Experience 18 Years with EPS Affiliations American Planning Association Urban Land Institute Colorado Municipal League Speaking Engagements TIF for TAT: Urban Renewal After HB 15-1348, Rocky Mountain Land Use Institute Conference, 2018 Streetcar Economics, American Planning Association Conference, 2010 Principal DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Rachel Shindman, AICP 730 17th Street, Suite 630, Denver, CO 80202 rshindman@epsdenver.com Economic & Planning Systems, Inc. The Economics of Land Use www.epsys.com Vice President 303 623 3557 Rachel Shindman, AICP, brings several years of experience in many of EPS’s practice areas. Her specializations include real estate economics, fiscal and economic impact analysis, and economic development and revitalization. She has a strong skill set for addressing urban economic and policy issues, and her experience in public, private, and non-profit organizations enables her to work successfully with a diverse set of clients. SELECTED PROJECT EXPERIENCE ¾Short Term Rental Study | Vail, CO ¾Short Term Rental Regulatory Fee Study | Breckenridge, CO ¾Housing Linkage Program | Mountain Village, CO ¾Affordable Housing Mitigation Rate and Fee-in-Lieu Updates Vail, CO ¾Housing Needs Update | Summit County, CO ¾Housing Needs Assessment | Lake County, CO ¾Housing Needs Study | Archuleta County, CO ¾Housing Needs Assessment | Upper Arkansas Area Council of Governments, CO ¾Housing Needs Assessment | Chaffee County, CO ¾St. Anthony’s Summit Medical Center Workforce Housing Solutions Frisco, CO ¾Peoria Crossing Market Study | Aurora, CO ¾Comprehensive Housing Needs Assessment | Fort Morgan, CO ¾Housing and Transportation Funding Model | Boulder County, CO ¾Downtown Workforce Housing Needs Assessment | Billings, MT ¾Comprehensive Housing Policy Framework | San Antonio, TX ¾Housing Policy Study | San Antonio, TX ¾Housing Trends and Strategic Plan | Plano, TX ¾Nashville Inclusionary Housing Study | Nashville, TN ¾Inclusionary Housing Calculator Tool Development | Ontario, Canada Education Master of Regional Planning, Cornell University B.A., Queen’s University B.Ed., Queen’s University Certificate in GIS, Queen’s University Employment History 7 Years with EPS Affiliations American Institute of Certified Planners American Planning Association Urban Land Institute Presentations Tiny Homes, Big Ideas: Alternative Housing, Conventional Reality Panel Discussion (convener and facilitator) American Planning Association – Colorado State Conference, Keystone, CO 2018 Can Tiny Homes Help Solve Denver’s Affordable Housing Crisis? Panel Discussion (moderator) Denver Design Week, Denver, CO 2018 Finding the “Opportunity” in Opportunity Zones Panel Discussion (convener and moderator) American Planning Association – Colorado State Conference, Snowmass 2019 DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E C. Chris Cares Managing Director/Founding Partner ABOUT Chris possesses a diverse background in recreation and tourism research. A founding partner of RRC Associates, he specializes in practical research techniques including survey and qualitative research, modeling and applied analysis to support planning efforts and to solve problems in municipal administration and business applications. Parks and recreation needs assessments, with emphasis on adventure sports, are particular areas of specialization. Additionally, Chris has decades of experience working with the outdoor recreation industry including mountain resorts on summer and winter activities/facilities. Chris has overseen hundreds of community/citizen surveys in cities and counties throughout the United States, which provide input to parks, recreation, trails, open space, and planning needs assessments. These studies are typically incorporated into parks and open space master plans, or other policy documents. EDUCATION Master of City Planning: Harvard University 1975 Bachelor of Arts, Political Science: University of Rochester 1972 PROFESSIONAL EXPERIENCE 1983 to present Managing Director/Founding Partner, RRC Associates, Boulder, CO 1977 to 1981 Planner/Associate, Gage Davis Associates, Boulder, CO 1976 to 1977 Planner, City of Boulder, Boulder, CO RELEVANT WORK EXPERIENCE Parks & Rec. Surveys/Assessments Broomfield, CO Cedar Rapids, IA Cripple Creek, CO Eagle-Vail, CO Erie, CO Fruita, CO Grand Junction, CO Ken Caryl Ranch, CO Jefferson County, CO Larimer County, CO Louisville, CO Lafayette, CO Oklahoma City, OK Palm Springs, CA Park County, CO State of New Mexico SCORP Spokane, WA Superior, CO Village at Castle Pines, CO Housing & Transportation Assessments Aspen/Pitkin County, CO Boulder, CO Eagle County and Town of Vail, CO Grand Junction, CO Lafayette, CO Longmont, CO Pueblo, CO San Miguel County, CO Weld County, CO Westminster, CO Tourism and Ski Area Visitor Research National Ski Areas Association Colorado Ski Country USA Vail Resorts Breckenridge Tourism Office Copper Mountain Telluride Ski and Golf Company Upper Colorado River Research, CO CONTACT P: 303-396-1625 E: chris@rrcassociates.com W: rrcassociates.com RELEVANT BOARD EXPERIENCE • (Former) Breckenridge Outdoor Education Center, Breckenridge, CO – boec.org • GP RED – Research, Education and Development for Health, Recreation and Land Management – gpred.org (currently board president) DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E David Becher Director of Research ABOUT David has diverse experience managing and conducting many types of market research and planning projects for public and private sector clients in his more than two decades at RRC. With an educational background in urban and regional planning, public administration, and business administration, David works extensively in the areas of survey research, economic and demographic research, community planning, and affordable housing. EDUCATION Master of Business Administration, University of Colorado at Boulder Master of Urban and Regional Planning, University of Colorado at Denver Master of Public Administration, University of Colorado at Denver Bachelor of Arts, Philosophy major, concentration in Environmental Studies, Williams College PROFESSIONAL EXPERIENCE 2008 to present Director of Research, RRC Associates, Boulder, CO 1992 to 2008 Research Analyst and Sr. Research Analyst, RRC Associates, Boulder, CO RELEVANT WORK EXPERIENCE Planning & Affordable Housing City of Boulder Comp Plan Survey, CO Monroe County Job Generation Study, FL North Lake Tahoe Community Survey, CA Teton County Housing Nexus Survey, WY Snowmass Housing Assessment, CO Aspen Employment Generation Study, CO Roaring Fork Valley Housing Study, CO San Miguel County Housing Study, CO Boulder Afford. Housing & HOA Study, CO Park County Housing Survey, CO Gunnison County Fee-In-Lieu Update, CO Telluride Region Growth Study, CO Economic & Fiscal Impact Analysis Boulder Regional Economic Analysis, CO Snowbasin Cost/Benefit Analysis, UT Winter X Games Economic Impact, CO Economic Impact of Skiing in Colorado Economic Impact of Skiing in Wisconsin River Run Fiscal & Economic Impact, ID South Lake Tahoe Retail Analysis, CA Montrose Regional Econ. Analysis, CO Wasatch Peaks Ranch Fiscal Impact, UT Tourism/ Visitor Research Estes Park Visitor Research, CO Aspen Summer Visitor Research, CO Snowmass Strategic Tourism Plan, CO Jackson Hole Airport User Research, WY Sun Valley Airport User Research, ID Las Cruces Airport market demand, NM Yakima Airport market demand, WA Lea County Airport market demand, NM North Lake Tahoe Visitor Research, CA Downtown Boulder Visitor Research, CO Vail Special Events Research, CO Visit Littleton Branding Research, CO Skier Research NSAA National Demographic Study, US NSAA Kottke Survey, US Colorado Ski Country USA Ski Utah Ski Idaho Ski Wisconsin Vail Resorts Alterra Mountain Company Jackson Hole, WY CONTACT P: 303-396-1611 E: david@rrcassociates.com W: rrcassociates.com DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 3. Experience Eagle County 12 3. EXPERIENCE The EPS/RRC team has worked extensively on affordable housing studies and mitigation fee programs, addressing similar questions to those that will be addressed in this study. The two firms use a highly integrated approach and draw from each other’s experience and insights to provide a well-rounded, data driven set of recommendations. Both firms have been on the forefront of affordable housing needs assessments (for the past 30 years), which have evolved into studies that link housing solutions to local expenditure. These linkage studies cover commercial, local residential, and guest spending. The studies that have focused on guest spending are a relatively recent evolution in the strategic basis that local communities can use to more comprehensively address the growing affordable housing need. In fact, few teams offer the depth of experience with regulatory fee nexus studies, primary data research, affordable housing strategies, and familiarity with mountain resort communities. EPS Relevant Experience Short Term Rental Study Vail, Colorado The Town hired EPS, in partnership with RRC, to analyze the existing STR inventory, understand the housing impacts of STR use in the town, and complete a nexus study to support a fee on STR units. Through this work, EPS was able to characterize the STR inventory in the Town of Vail, including location, size, occupancy, rental rate, and ownership characteristics. This data was contextualized within the overall town lodging inventory to understand the role of STR units in the lodging sector. EPS also analyzed the Town’s housing market over a three year period, with a focus on units registered as STRs before and/or after sale, to evaluate the type and value of units used as STRs and how those units relate to the overall housing market. The final component of this effort was a nexus study to support a fee program, with revenue supporting local workforce housing programs. EPS’s analysis used an economic impact model to document the relationship between STR guest spending and affordable housing demand based on employment generated by spending. This resulted in a recommended fee for mitigating the impacts of STRs on housing need in the town. This fee program and other policy changes, determined in partnership with staff, are currently under consideration by Town Council. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Economic & Planning Systems, Inc. | RRC Associates Short-Term Rental Program Fee Nexus Study 13 Short Term Rental Regulatory Fee Study Breckenridge, Colorado The Town of Breckenridge is a national and international ski and outdoor recreation destination. Town policy makers are facing a housing crisis and pressure from constituents to address the problem. The housing challenges are being amplified by the ongoing COVID-19 pandemic and its impacts on “amenity migration” patterns resulting in increased purchases and occupancy of second homes and conversion of second homes and long term rentals to full time residences for remote workers, further pricing out the local workforce. On top of that, the growth of vacation rental by owner platforms such as VRBO and Airbnb is driving investment in housing by corporate entities buying “trophy” properties to manage and market with usage patterns more like hotels than traditional vacation rentals. The growth of Metro Denver has also generated more buyers who tend to purchase older and lower priced properties as second homes, sometimes converting long-term rental housing to second homes and short term rentals (STRs). The Town hired EPS to work with its legal staff to design a regulatory fee program applied to short term rentals. Traditional lodging properties such as hotels and lodges (defined by zoning classifications) are exempt from the fee in order to target properties more likely to affect neighborhoods and long term rental or purchase opportunities for the local workforce. EPS prepared an economic analysis that demonstrated the impacts of STR use on the demand for workforce housing and calculated an annual fee designed to fund related housing programs. We then projected the potential fee revenue the program would generate and worked with Town Housing and Finance staff to ensure the fee revenues would be restricted to housing programs. Town Council adopted the fee in November 2021. Roaring Fork Valley Regional Housing Study Aspen to Glenwood Springs and New Castle to Eagle, Colorado The Roaring Fork Valley has become synonymous with high housing costs, a tight and constrained housing supply, and an ever- expanding commute shed. The discontinuity of affordable housing practices, goals, policies, and initiatives by numerous counties and municipalities makes tackling affordable housing needs and issues an even more challenging problem to solve. For the past few decades, it has been clear that housing needs for the workforce are not being met sufficiently. Years of applying best practices in most of the Valley’s communities has helped many, but left still many more needs unmet. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 3. Experience Eagle County 14 This goal of this study was to provide a solid foundation from which a regional solution could finally address a regional problem. EPS and its subconsultant, RRC Associates, provided an in-depth analysis of workforce needs, a projection of age-and income-specific needs, and a robust foundation from which to communicate the story and issues to local governments, stakeholders, and the public. The team conducted the first-ever regional resident and employer survey to comprehensively assess the perceptions, concerns and housing needs of residents, workers, and employers. The team also pioneered a new methodology for identifying housing gaps by income. The findings revealed subregional under- and over-supplies, inter-regional dependencies, and a truer picture of the housing needs by income created by each driver of housing demand – factoring in wage and salary workers, proprietors, non-working residents, in-commuters and out-commuters. San Miguel Housing Needs Assessment San Miguel County, Colorado In partnership with RRC Associates, EPS provided the County with a comprehensive Housing Needs Assessment report. This analysis included an evaluation of past studies and datasets, a summary of housing needs and conditions in San Miguel County, and documented factors affecting the supply and demand for housing—such as employment growth, housing production, commuting trends, and job holdings. In addition, the study provided estimates on the depth of need, both in terms of existing and projected, based on a detailed evaluation of employee generation rates. The employee generation rate data was provided as a platform for updating fee standards for commercial linkage programs, for all jurisdictions within the county. The final report allowed San Miguel County to identify specific affordable housing goals by income level, informed the housing needs in the county over the next five years, and provided a basis for new mitigation fees. Lake County Housing Needs Assessment Leadville, Colorado Lake County is a unique community in the Rocky Mountain West, given its origins and continuity as a mining community and its growing appeal as a tourism and recreation destination. Leadville, the County’s only incorporated municipality, has a strong mining history and downtown historic district. The regional context for Lake County is one of growth in both the commercial and residential sectors. The surrounding counties include Eagle, Summit, Chaffee, and Pitkin, each of which has a thriving real estate market and growing economy. Lake County’s residents provide much of the workforce for these surrounding communities, as regional housing DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Economic & Planning Systems, Inc. | RRC Associates Short-Term Rental Program Fee Nexus Study 15 challenges push workers to seek housing in Lake County. There has been a major shift in the Lake County housing market since 2015, both in rental and for-sale homes. While Lake County is not alone in the challenges it is facing, its geographic and employment context make the challenges and opportunities present distinct in the region. EPS prepared a Housing Needs Assessment for Lake County that focused on identifying the key housing issues facing the community as well as resources in the County available to address these issues. The analysis documented economic and demographic conditions contributing to housing affordability issues, evaluated the housing market to identify market trends affecting affordability, and recommended strategies and actions for the City and County to pursue to increase the supply and affordability of housing. This work was done through data analysis, stakeholder input obtained through focus groups and direct interviews, and community outreach through two community meetings. The resources and strategies available to the community were cataloged, and applicability to Leadville and Lake County was assessed as part of the creation of an action plan to address identified issues and goals. The analysis emphasized implementation measures focused around policy, funding, and governance. EPS made recommendations in five categories: land strategy, policy initiatives, organization and management, funding sources, and regional partnerships. Economic Impact of Resident Housing Investment Vail, Colorado The Town of Vail has made significant financial investments in resident housing over many decades. Such investments were rooted in an awareness that affordability and availability of housing for residents and the workforce benefit the broader Vail economy, business community, the overall community character, and the quality of the guest experience. One of Vail’s more innovation and effective investment strategies has been deed-restriction acquisitions, in which the Town appropriates funds annually to ensure that homes are available for residents and the workforce. A new deed restriction purchase program, called Vail InDEED, was recently created to ensure Vail meets its 2027 Vail Housing 2027 Strategic Plan goal of acquiring 1,000 additional resident housing unit deed restrictions by the year 2027. In times of competing community investment priorities and alternatives, it is important that the benefits of resident housing investment are quantified and understood by the community and its leadership. For this purpose, the Vail Local Housing Authority (VLHA) contracted with EPS to quantify the economic values and community benefits of resident housing investment on the local economy and community. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 3. Experience Eagle County 16 COVID-19 Economic Resiliency Plan Ouray County, Colorado EPS worked with Ouray County to develop strategic initiatives that effectively address the economic challenges from the COVID-19 pandemic. The work built on our analysis of local economic sectors with the greatest exposure and those best positioned for recovery and expansion. EPS also mapped out processes and structural relationships between the County, its jurisdictions, and State agencies to improve the communication and implementation of COVID-19 related regulations and assistance. The impetus of the study was to help local residents, business owners, and jurisdictions become proactive in thinking about how to measure the impact of future shocks to the system, and how to build economic resiliency to effectively manage these shocks as they arise in the future. This effort involved significant analysis on the structure of and trends in the Ouray County economy, business sentiment, visitor activity, and the local public health and emergency management system. At its core, it was a data-driven effort calibrated based on local understanding. The study culminated in a series of recommendations on how Ouray County can foster economic resiliency and position itself for current and future challenges. Recommendations were organized into four major categories: Communications, Readiness to Access Sources of Aid, Regional Economic Resiliency, and Tactical Recommendations for businesses. In addition, EPS developed an updated set of recommendations that built on the goals presented in the 2011 Ouray County Bottom-up Economic Development Strategy, with a particular focus on the progress Ouray County has made and how it can use these goals to advance economic resiliency. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Economic & Planning Systems, Inc. | RRC Associates Short-Term Rental Program Fee Nexus Study 17 RRC Relevant Experience San Miguel/Ouray Counties (Colorado) Regional Housing Study In 2018/19 (with EPS), and previously in 2010/11, RRC conducted employer and resident housing surveys throughout San Miguel and Ouray Counties. The employer surveys were designed to obtain commercial linkage data as well as employer perceptions of local housing needs and potential solutions. The household and commuter surveys were designed to reach a broad population of residents and workers to better understand local housing problems and preferences. The results of both surveys were used to develop assessments of housing needs in the region. RRC conducted employer surveys throughout San Miguel (Telluride) and Ouray Counties in 2010/11. These surveys were designed to obtain employer data including number of employees per square foot. This information will be used for various modeling efforts, transportation planning and for potential development or refinement of local fees imposed on new commercial development. There was also a household survey (mailed) and an in-commuter survey (conducted on bus lines) designed to reach a broad population of residents and workers. Aspen/Pitkin County, Colorado, 2008 - 2022 RRC Associates has worked over many years with the City of Aspen, Town of Snowmass Village, Pitkin County, and Aspen / Pitkin County Housing Authority, conducting needs assessment surveys, employment generation studies, and other studies over the past decade, including the following: •2022 studies in progress: RRC Associates, in conjunction with EPS, is currently conducting a series of studies in Pitkin County, including the following: o Analysis of the Pitkin County economy (for Pitkin County) o Residential employment generation study (for City of Aspen) o Short-term rental regulatory fee study (for City of Aspen) •Aspen Residential Employment Generation Special Topics Analysis, 2021: As a partial followup to the 2015 residential employment generation work described below, RRC examined the employment generation associated with STRs in Aspen via a reanalysis of 2015 survey data. The analysis also examined trends in the construction of basements in Aspen, and residential employment associated with below-grade square footage. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 3. Experience Eagle County 18 •Roaring Fork / Lower Colorado River Valley Housing Needs Assessment, 2018- 19: Working on a consultant team, RRC conducted surveys of residents and employers as part of effort to evaluate housing needs and opportunities in the Aspen to Parachute region. The study was designed to be a resource for jurisdictions throughout the region, as well as contribute to discussions of potential regional solutions. •Aspen Residential Employment Generation Study, 2015: This study evaluated employment impacts associated with the construction and ongoing operation/maintenance of residential homes in the City of Aspen, with segmentation by type of unit (single family/duplex vs. condo/townhome) and occupancy type (full-time resident vs. other users). The results of the study were used to update housing mitigation regulations for new residential development. •Affordable Housing Fee Methodology, 2012: Working on a consultant team, RRC helped provide the Aspen/Pitkin County/Aspen-Pitkin County Housing Authority with a methodology for calculating fees that could be assessed by the City of Aspen in lieu of the provision of required affordable housing, and by Pitkin County though its affordable housing impact fee program. •Housing surveys of Residents, Employees, Homeowners and Employers, 2008: Working on a consultant team, RRC helped provide the City of Aspen and the Aspen Pitkin County Housing Authority with a survey-based housing study that provided a variety of data concerning local residents, including their demographics and their evaluations of different aspects of the community. The results were used for a variety of housing planning purposes. City of Aspen and Aspen/Pitkin County Housing Authority Reports: https://www.apcha.org/342/Research-Reports https://docplayer.net/9402413-Aspen-residential-employment-generation-study. html Comprehensive Plan Update – Housing and Economic Appendices (2019) Garfield County, Colorado Working on a consultant team, RRC Associates assisted Garfield County in updating the appendix chapters to its comprehensive plan regarding housing and economic development. The housing appendix drew heavily from the regional housing needs assessment and data resources RRC helped produce in 2018-19 (summarized above), along with other relevant data. The economics appendix included a broad overview of historic trends and future projections of the Garfield County economy, along with deeper dives on specific topics DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Economic & Planning Systems, Inc. | RRC Associates Short-Term Rental Program Fee Nexus Study 19 (such as agriculture, energy and outdoor recreation). The appendices were intended to provide a fact base and context for the County as it considers policy changes in the comprehensive plan. Economic Impact of the Eagle County Regional Airport, 2014/15 and 2017/18 In winter 2014/15 and summer 2015, using surveys of winter and summer air passengers, RRC Associates quantified the direct economic impacts of the visitors and party-time residents who used the Eagle County Regional Airport, including impacts on Eagle County as a whole and on the respective individual communities within Eagle County. The research was repeated and updated in winter 2017/18. The study was used by the EGE Air Alliance to lobby for support for local air service development efforts. (RRC has also conducted airport passenger research and economic impact analyses for several other mountain resort airports, including Gunnison, Hayden, Jackson, and Sun Valley.) Links to summary results and press: http://media.wix.com/ ugd/5e050f_27b2f48ab4ea431bae942b8310ce27ac.pdf http://www.vaildaily.com/news/study-puts-numbers-to-eagle-county-airport- impact/ Town of Jackson / Teton County, WY Resident and Employer Housing Surveys Description and status of the engagement: Working on a consultant team in support of a regional housing study, RRC designed, administered, and analyzed the results of two mailback surveys, of Teton County employers and homeowners respectively. The surveys focused primarily on a range of housing and employment issues in the region. The homeowner survey was mailed to 3,000 homeowners and yielded a 33.1 percent response rate, while the employer survey was sent to 1,000 employers and yielded a 24.3 percent response rate, with each supportedxxx by an extensive public outreach effort. The results were incorporated a study entitled “Teton County & Town of Jackson Employee Generation by Land Use Study 2013.” The work leveraged RRC’s knowledge and experience working in mountain communities generally and Jackson Hole area specifically, as RRC had a long history of conducting a variety of survey research on behalf the local ski resort, airport, Housing Authority (2005-06), and other entities in the Jackson Hole region. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 4. Schedule | 5. Budget/Pricing Eagle County 20 4. SCHEDULE EPS is scheduled to finish the STR Conditions deliverable by mid August and the final report by late November. Figure 1. Project Schedule 5. BUDGET/PRICING EPS agrees to complete the above work program on a time and charges basis up to a maximum of $57,500. The approximate breakdown of level of effort by task and firm is shown below in Table 1 on the next page. The EPS/RRC team is amenable to suggestions from Eagle County regarding the budget allocation by task and welcome your input regarding the level of effort and corresponding budget amounts.   ⚫   ⚫ DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Eagle County Short-Term Rental Program Fee Nexus Study Economic & Planning Systems, Inc. | RRC Associates 21 Table 1. Proposed Budget by Task Task Description EPS RRC Total Task 1: Project Kickoff Review work plan and confirm schedule $1,500 $1,500 $3,000 Task 2: Data Collection $7,000 $9,500 $16,500 Task 2.1 - Primary Data Tabulate primary data, occupancy rates from AirDNA, VRBO, Inntopia, etc.$1,000 $7,750 Task 2.2 - Secondary Data County parcel layer, location of STRs, MLS data overlay, saturation by subarea, etc.$6,000 $1,750 Task 3: STR Conditions Deliverable Provide understanding of current status, challenges, and opportunities $5,250 $1,000 $6,250 Task 4: Community Outreach $1,500 $500 $2,000 Task 4.1 - BOCC Worksession Update BOCC on study, set expectations, include key issues for balance of study $1,500 $500 Task 5: Nexus Study $9,500 $2,000 $11,500 Task 5.1 - Spending Analysis Spend by local households compared to spend by guests, w/ peer community data $5,500 $1,000 Task 5.2 - Economic Impact and Housing Need Incorporate wages by occupation, job holding factors, purchase potential $4,000 $1,000 Task 6: Policy Evaluation $7,250 $2,000 $9,250 Task 6.1 - Mitigation Sensitivity Analysis Build from existing policy and provide direction for regulatory fee structure $3,750 $750 Task 6.2 - Recommended Regulatory Fee Structure Build from peer communities to define recommendation for BOCC $3,500 $1,250 Task 7: Community Outreach $1,500 $500 $2,000 Task 7.1 - BOCC Worksession Final presentation $1,500 $500 Task 8: Final Report Report to establish basis for fee adoption $5,000 $1,500 $6,500 Totals $38,500 $18,500 $57,000 Direct Costs Data Acquisition/Misc.$500 Total Direct Costs $500 Total Project Budget $57,500 Source: Economic & Planning Systems DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 6. Familiarity with Eagle County Eagle County 22 6. FAMILIARITY WITH EAGLE COUNTY EPS has worked extensively in Eagle County over the past 20 years and knows many of the communities as well as the unincorporated areas. Active clients include Vail, Avon, Minturn, and the Town of Eagle. EPS is currently working on two projects for the Town of Eagle including the Grand Avenue corridor plan and a recently awarded affordable housing study. Recently, Andrew Knudtsen of EPS was asked to facilitate the Eagle County Affordable Housing Task Force. During the Task Force meeting, he was able to capture an array of comments related to STRs and how the needs and challenges vary by community throughout the county. RRC has also worked extensively in the county with many of the same jurisdictions. Over the past several decades, the firm has worked for both Vail Resorts and Vail Associates. RRC's historical knowledge of the workings of Eagle County, the economic drivers, the impact of growth over time, and the importance of affordable housing in the functioning of the county will provide strong contextual support for this project. It is clear that the EPS/ RRC team are well recognized and can build from a breadth of previous work throughout the county. In addition the teams' work in Eagle County, both EPS and RRC are currently working together in Mountain Village, Pitkin County, Summit County and the City of Aspen. All of this work is related to affordable housing and some directly overlap with the nexus analysis of the impact of STRs on local housing. The two firms have also worked extensively in the region, including Lake County, Mesa County, Garfield County, San Miguel County, Teton County (WY) as well as others. Few teams offer the level of experience throughout the Rocky Mountain West. Peer Community Funding Analysis Avon, Colorado The Town of Avon is a small, mountain community and a gateway to the Beaver Creek Ski Resort. Avon officials and staff received questions from constituents regarding the Town’s tax and fee levels and the necessity of some of these charges. Town officials and staff wanted objective data on tax, revenue, and expense levels in peer communities to inform the budget process for 2018 and its constituents. As part of Avon’s Strategic Plan for fiscal years 2017-2018, a tier one priority was to utilize the Real Estate Transfer Tax (RETT) to bolster affordable, workforce housing. The Town wanted an assessment of the impact DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Economic & Planning Systems, Inc. | RRC Associates Short-Term Rental Program Fee Nexus Study 23 of the RETT on the local real estate market and the revenue implications of any modifications. The Town of Avon sought to ensure the revenue streams of the local government were reasonable and provided their residents and guests with a comparable level of service. The Town retained EPS to evaluate and compare the revenue structure and budgeting practices of several peer communities in nearby Eagle and Summit Counties. A selection criterion of these communities was the existence of a RETT, a revenue source no longer allowed to be adopted but has been grandfathered. For the initial task, EPS collected and analyzed budget, tax, fee, and other financial information for each peer community. To compare the various communities, EPS developed demand unit comparisons from the revenue and expenditure data and normalized each community’s revenue and expense data. Additional items analyzed included town services, real estate conditions, and capital funding and development charges. EPS identified other revenue options that other communities collect but Avon does not. The new revenue sources for Avon include construction use tax, construction excise tax, and vehicle use tax. For each new revenue source, EPS identified revenue projections for the Town of Avon. EPS facilitated a discussion with Town Council on the findings and recommendations. Grand Avenue Corridor Plan Eagle, Colorado The Town of Eagle received control of a portion of Grand Avenue (Highway 6) from the Colorado Department of Transportation (CDOT) that extends from Eby Creek roundabout on the east to the western edge of the town boundary. The Town of Eagle is now responsible for the roadway improvements and maintenance, which prefaced the Grand Avenue Corridor Plan. The Corridor Plan aims to improve mobility, establish a strong sense of place and identity, and direct future development along the corridor such that it creates connectivity between major destinations and enables walkability and biking along the corridor and to the downtown commercial core. EPS is responsible for the economic analysis of redevelopment opportunities along the corridor. This includes an in-depth market analysis of the demand and supply metrics of the Town and market area. EPS held business and property owner stakeholder groups to integrate findings with data analysis and identify opportunities to catalyze development. EPS is identifying value capture and public financing strategies for the Grand Avenue corridor and providing an evaluation matrix and revenue estimates to enable the Town to identify best-fit options to include in a final set of recommendations. EPS will workshop DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 6. Familiarity with Eagle County Eagle County 24 with Town staff to define, evaluate, and rank the options. An implementation strategy and timeline for improvements will be created by EPS to identify aggregate proceeds (sources) and total project costs (uses) that address capital improvements by phase. Wolcott Master Plan Market Study Eagle County, Colorado EPS was retained by the developer to provide a third-party market analysis in support of its efforts to develop the property and secure debt and equity investors. At build out, the Wolcott Master Plan envisions 577 residential units and approximately 150,000 square feet of commercial and mixed-use space. Of the 375 acres, 140 acres will be dedicated to open space, and a mile-and- a-half of currently private Eagle River shoreline will become accessible to the public, including a park and event area. The development intends to meet the market with an approach to satisfying demands of a wide range of buyers, including boomers, gen-xers, locals looking for a more central location, second home owners, and others all with a common interest in a mixed use, walkable development with a high level of amenities and community engagement. EPS provided the developer with a comprehensive market analysis, including a grounding of the proposed product mix and types, pricing, absorption. The findings documented the volume and price points of comparable and competitive developments in up-valley, mid-valley, and down-valley locations. EPS identified where price points and volumes had been before, during, and after the recession, and projected these critical demand elements would be over the next few years. In addition to providing quantitative data backing conclusions regarding product pricing and absorption, EPS provided qualitative rationale for the market strengths of this development, as well as an assessment of funding structures, such as a Homeowners Association and Metro District and the corresponding buyer tolerance for dues. Tree Farm Market Study Eagle County, Colorado EPS was retained to complete a market study and a feasibility pro forma for a 72-acre planned development with sketch plan approval from Eagle County for 400 housing units and 123,279 square feet of commercial space. The primary purpose of the market study was to evaluate the proposed use and propose adjustments in the product mix and pricing based on current and forecasted market conditions. In addition, EPS forecasted cash flows associated with property and sales tax collections that the development would receive from a proposed metro district. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Economic & Planning Systems, Inc. | RRC Associates Short-Term Rental Program Fee Nexus Study 25 EPS evaluated conditions and trends in the Mid Valley relevant to market rate, affordable, and resident-occupant housing products. The residential analysis assessed demographics, building activity, the development pipeline, product mix, and affordable trends. The study included an analysis of the competitive developments in the Mid Valley, an inventory of the unsold, unbuilt and approved housing units. The commercial market analysis included an inventory of retail commercial, office commercial, and service commercial/industrial space in the Mid Valley. EPS estimated existing retail expenditure and total personal income, inflow and leakage of retail sales by store type, and existing store sales for the Mid Valley. The analysis also included a forecast of demand for retail space, and retail development potentials for the project by store type. The industrial analysis evaluated the inventory of competitive space, live/work unit developments, historical development conditions, and estimated the development potentials for industrial space and live/workspace. The feasibility proforma was developed to be used by the developer to test a variety of development scenarios. The model evaluated the financial returns of the project based on a variety of development programs and infrastructure cost estimates. Model inputs were built to be adjustable to allow the client to run a variety of scenarios. Red Mountain Ranch Market and Economic Study Eagle, Colorado The Town of Eagle requested EPS evaluate the market potential for additional commercial development within the community. Key areas of concern to the Town included the long-term economic viability of its historic downtown; the ability of the Town to reach its future fiscal demands based on projected growth and community need; and clarity concerning the costs and revenues associated with growth. The study was triggered by a request for annexation of the 400-acre Red Mountain Ranch proposed for 450,000 square feet of retail development and 300 residential units. EPS assessed market demand and projected the level of additional supportable retail space by measuring expenditure outflow and estimating the level of sales that could be captured by the Town with additional development. EPS then constructed a model based on the findings of the market analysis to assess fiscal impacts and forecast future Town revenues and expenditures over a 20-year period. EPS structured the model to enable the Town to test multiple scenarios to understand its future financial performance. In addition, EPS evaluated impacts to the historic downtown area, which required separate considerations for regional retail and locally-targeted retail. EPS advised the Town regarding the opportunities and challenges associated with the local retailers and how to enhance the economic conditions of the downtown area. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 7. References Eagle County 26 7. REFERENCES Town of Vail Kathleen Halloran, Finance Director | 970 479 2116 | khalloran@vailgov.com Pitkin County Cindy Houban, Community Development Director | 970 920 5097 | cindyh@ co.pitkin.co.us Town of Breckenridge Rick G. Holman, Town Manager | 970 547 3166 | rickh@townofbreckenridge. com City of Aspen and Aspen/Pitkin County Housing Authority Ben Anderson, Principal Long-Range Planning , Community Development, City of Aspen | 970 429 2765 | ben.anderson@aspen.gov Katherine Gazunis (former Executive Director, Garfield County Housing Authority) currently Executive Director, Bloomington Housing Authority 812 339 3491 x124 Garfield County Fred Jarman, Deputy County Manager | 970 945 8212 | fredjarman@garfield- county.com Vail Resorts Eagle County Gabe Shalley (former Senior Airline Marketing Manager, Vail Resorts) Vail Valley Foundation | 970 777 2015 | gshalley@vvf.org Town of Jackson / Teton County, WY Christine Walker (former Teton County Housing Authority Executive Director) Navigate, LLC Workforce Housing Solutions | 307 690 4487 | Christine@ NavigateJH.com DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Economic & Planning Systems, Inc. | RRC Associates Short-Term Rental Program Fee Nexus Study 27 8. LEGAL ISSUES Economic & Planning Systems states that there are no lawsuits, federal, state, or local tax liens, or any potential claims or liabilities against the firm or its officers of the company at this time nor within the last three years. 9. DELIVERABLES This study will provide a nexus analysis documenting the relationship between guest spending in STRs and demand for workforce housing, with the result providing a reasonable fee that can be charged annually for regulatory purposes. The study will use economic impact techniques to quantify the relationships between guest spending when staying in STRs and the number of jobs and employee-households supported in the local economy by that spending. Guests staying in STRs spend money in the local economy – this spending supports jobs that typically do not pay enough for employees to afford market- rate housing. The nexus analysis will document the magnitude of employee housing need generated by guest spending, the extent of the affordability gap between the need from these employees and the local cost of housing, and calibrate the fee to mitigate that gap. The analysis will also account for the impact of local resident households, with the fee calculation based on the difference between the impact of guest spending and the baseline impact of local resident spending. This analysis will use a jobs-housing economic impact model to quantify the jobs and households supported by guest spending in STRs. The IMPLAN model (Impact Analysis for Planning) was used to estimate the relationships between spending and jobs supported. IMPLAN was developed by the Bureau of Land Management, U.S. Forest Service, and the University of Minnesota and is widely used by state and federal agencies, academic researchers, and local economic development organizations to evaluate the economic impacts of proposed policies, new industries, and land use changes. Step 1: Guest Spending Impacts The impact of guest spending is analyzed in six steps: 1. Guest expenditures: The first step is to determine the level of guest spending in unincorporated Eagle County. RRC Associates – a member of this team - has extensive data on guest spending from primary survey collections, and will provide this data for the study area as well as peer community areas as points of comparison. This data has been collected over multiple years and RRC is able to segment the data to further clarify the degree of economic impact attributed to STR guest spending. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 9. Deliverables Eagle County 28 2. Jobs supported: Guest spending will be applied to the IMPLAN model for the affected industries (those industries where guest spending occurs – Accommodation and Food Services, Retail Trade, and Arts Entertainment and Recreation). IMPLAN applies industry expenditure flows through its input-output model and estimates the spending and jobs supported by that spending across the 20 major industries in the North American Industrial Classification System (NAICS). 3. Multiple job holder adjustment: The job generation data is adjusted to reflect that many employees have more than one job. This adjustment is made to ensure the analysis does not overestimate the number of employees supported, and is calculated using a jobs-per-employee factor local to Eagle County. 4. Employment by industry, occupation, and wage level: The IMPLAN results are provided by NAICS industry; this data is then further analyzed by occupation and wage level to provide a more detailed summary of the employment generated by guest spending. 5. Household formation: Another adjustment is made to account for the fact that many households have more than one earner (and need is being calculated by households, not individual employees). This adjustment has the effect of raising the collective income of the employees within a household, thus increasing the amount the employee-household can pay for housing and reducing the gap between their ability to pay and the cost of housing. 6. Tabulate households by income range: The number of households by income range (as a percent of Area Median Income) are tabulated, resulting in the total housing need, by affordability level, generated by guest spending in the local economy. Step 2: Local Household Spending Impacts The impact of local resident household spending is then calculated to isolate the difference between guest spending and local resident households, and base the gap on that difference (and not the entire impact of guest spending). To do this, the same economic impact method will be used for a resident household earning the local median income to document the jobs supported from local household spending in the economy. The housing need associated with local spending is then subtracted from that of guest spending, resulting in the needs associated with guest spending above those of a local resident household. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E Economic & Planning Systems, Inc. | RRC Associates Short-Term Rental Program Fee Nexus Study 29 Step 3: Fee Calculation The last step of the analysis is to calculate the fee supported by the impact of guest spending. There are four key components to the fee calculation: 1. Households Supported: The number of households at or below a specified AMI level supported by guest spending form the basis of the fee, as these represent employees needed in the community who cannot otherwise afford housing. 2. Occupancy Rate: Guest expenditures are estimated on a per-unit per- day basis, which results in a total impact for 365 days per year. To reflect the impact of guest expenditures actually seen in the economy, a locally- calibrated STR occupancy rate is applied to the housing demand. 3. Affordability Gap: The affordability gap per household and AMI range will be calculated based on local housing market conditions. The total affordability gap (accounting for households generated by AMI level and the associated affordability gap) will be calculated, both for guest spending and local spending, to determine the affordability gap generated by each STR unit and local housing unit. 4. Adjustment for Local Households: To isolate the impact of guest spending above the impact of a local household, the gap associated with local household spending is subtracted from the gap associated with guest spending, resulting in a net gap per STR unit. This gap represents the fee per STR unit that would be required to mitigate 100 percent of the housing need generated by guest spending. Where possible (reflecting analysis and data availability), findings will help inform whether different areas of the unincorporated county should be treated differently under a fee program. The methodology above will provide Eagle County with a solid basis from which to adopt fees to fund affordable housing programs and projects. This approach is one that EPS/RRC have used to help towns and counties increase their resources to increase the availability of affordable housing. These programs can be used to expand supply side and demand side solutions, both of which are needed to address the growing need for additional affordable housing. If the County requests additional analysis to understand the impact of second homes not used as STRs, EPS recommends completing this effort and then defining an independent scope of work with County staff to address the impact of these homes, which are often dark. EPS has worked with staff from comparable jurisdictions on this topic and generally find that the solutions are more complex than a fee adoption, and has recommended a ‘two-step’ approach. The first to establish fees, and the second to explore a larger program. DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E 13 Eagle County Prof Services Final 5/14 EXHIBIT B Insurance Certificate DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). 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Errors &Omissions Retro 1/1/83 Retention -$10,000 EPS #223026 Eagle County Short-Term Rental Program Fee Nexus Study Eagle County,Colorado is additional insured on a primary and non-contributory basis under the Business Liability policy form provisions for BOTH General and Auto Liability with respect to operations and work performed by the named insured as required by written contract.Waivers of Subrogation apply per attached policy provisions. Eagle County,Colorado Attn:Anna Earl Finance Manager Post Office Box 850 Eagle CO 81631 DocuSign Envelope ID: 3048F0D7-BF7B-4BBA-A3B5-191CCEA3D02E